Investor Glossary-annualizeInvestor Glossary-annualizeInvestor Glossary-annualizeInvestor Glossary-annualizeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Annualize

The HTML to link to this page
 

To annualize is to take an item measured for a period other than one year and compute what it would be for a single year. Although it's possible to annualize numbers for periods longer than one year, usually the items to annualize are for periods of 12 months or less. For example, if managers annualize a production level of 30,000 units per quarter, it becomes 120,000 units a year. Or if company accountants annualize a salary of $3,000 a month, it becomes $36,000 a year. The effort to annualize data has drawbacks: it doesn't take into account seasonal variations or any volatility in a number during the year. Note that to annualize a figure is not to compound it, e.g., interest on an investment posted each month would not be assumed to be reinvested. Also, to annualize an interest rate on a loan is not the same as computing its annual percentage rate, which is often based on many factors.



Rate this annualize definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, ex-dividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, wholly-owned subsidiary, risk management, ex-dividend, in escrow, average price per share, EBITDA


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use